PAY ATTENTION TO THE BUSINESS CLIMATE OF WHERE COMPANIES DO BUSINESS SOME QUALITIES JUDGED: Ease of starting a business Obtaining credit & construction permits Getting electricity Registering property Taxes Investor protections Contract enforcement U.S. RANKED NUMBER 4, CHINA RANKED NUMBER 96 Watch the related WEALTHTRACK episode.
Action Point
IGNORE THE CROWD
Look at Out of Favor Funds Fairholme Fund a Prime Example First Morningstar Stock Fund Manager of the Decade Winner Morningstar Silver Medalist in Large Value Category Now Rated Only 2 Stars Out of Possible 5 by Morningstar Watch the related WEALTHTRACK episode.
BE VERY CAREFUL WHEN CONSIDERING ALTERNATIVE INVESTMENTS
Many new and inexperienced players Many strategies are untested in different market cycles High fees compared to traditional mutual funds Experience counts Go with managements with proven track records over many years and market cycles Watch the related WEALTHTRACK episode.
Take a look at the U.S. Treasury’s Floating Rate Notes, or FRNs
Watch the related WEALTHTRACK episode.
EXTEND YOUR HOLDING PERIODS FOR STOCKS AND MUTUAL FUNDS
Extend Your Holding Periods For Stocks And Mutual Funds Watch the related WEALTHTRACK episode.
RAISE SOME CASH AND HOLD IT
Watch the related WEALTHTRACK episode.